The thief comes only to steal and kill and destroy; I have come that they may have life, and have it to the full. “I am the good shepherd. The good shepherd lays down his life for the sheep.

28 Jul 2015


Hi Friends, 

a)      Never buy a share at a price  that is equal to, or higher than, the share’s peak price in the previous year.  Under normal conditions (when the stock markets are neither rising or falling rapidly) try to buy the share at a time when its price is hovering between the previous year’s lowest and average price .  In a rapidly rising market, you can safely buy the share at a price which is equal to , or a little higher than, its previous year’s average price.  Do not buy a share at a price that is more than 10 per cent higher than the share’s average price in the previous  year.

b)      Do not buy shares in a falling market. Wait for the fall to be completed, and share price to stabilize at their lower levels,  before buying.

c)       Don’t buy a share at a time when everybody is recommending it or when it is in the limelight.  Chances are that you will be buying an overpriced share.  Wait for the publicity to die out and share prices to fall, before buying it.  The other appropriate time to buy the  share would be in the early stages when the publicity on the company is building up and the company is not fully exposed to the glare of  publicity.

d)      Don’t buy a share immediately after a steep  rise in its price.   A steep rise is usually followed by a steep fall; the steeper the rise, the greater the subsequent fall.  When share prices fall, they usually retrace about  one-third to two-thirds of the price range covered by the earlier rise .  Thus if the price of a share rises from Rs.30 to Rs.45, then in the subsequent fall its price will probably drop to about Rs.35 to Rs.40 per share.  This is the appropriate time and price range for buying the share.

e)      A sharp fall in prices offers an opportunity for buying, provided you are confident that the fall in price is purely temporary and that the future outlook of the company is promising enough  to ensure that the subsequent rise in price will go far beyond the level from which it earlier fell.    

thanking you                           see you later,